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    Markets, corporate governance and creative work systems: the case of Ferodyn

    Konzelmann, Suzanne J. (2003) Markets, corporate governance and creative work systems: the case of Ferodyn. The Journal of Interdisciplinary Research 14 (2), pp. 139-158.

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    This paper examines the difficulties associated with implementing and maintaining a ‘creative,’ human-resource based work system in a market-based system of corporate governance using the case of Ferodyn.* In response to difficult industry conditions and sagging performance, American-owned Landis* Steel Corporation and Japanese-owned Daiichi* Steel Corporation jointly financed and built Ferodyn, a state-of-the-art high quality steel finishing facility. Although the joint venture was extremely successful in terms of quality, productivity and industrial relations, it came under severe stress from both external and internal pressures. Institutional investor demands for improvements in short run shareholder value ultimately resulted in the sale of Landis to Maxi-metal*, a global steel conglomerate, committed to a strategy of cost minimisation. In effect, the American system of corporate governance and the nature of power relations in the corporation served to weaken both Landis and Daiichi’s ability to support the joint venture and Ferodyn’s ability to survive in a hostile corporate, industry and macro-economic environment.


    Item Type: Article
    Keyword(s) / Subject(s): industrial partnership, co-operation, corporate governance, corporate restructuring, steel industry
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Research Centres and Institutes: Responsible Business Centre
    Depositing User: Sue Konzelmann
    Date Deposited: 24 Jan 2013 15:58
    Last Modified: 02 Aug 2023 17:01


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